area. now- a murder suspect shot and killed by police following a high-speed chase across the bay area. now disturbing new details emerge about the man's alleged crime spree. police think that that man may be linked to several bodies found in the bay area. anne makovec in vallejo to show us what she's learned about the investigation. >> reporter: this has been very confusing. there are a lot of cases involved and several killings. but in the past 24 hours a lot of activity has focused on the house behind me in vallejo. this missing persons poster distributed by the woman's husband a few days ago, it's believed these two women in these photos could be the people into were found dead in this house here behind me, a house where a huge supply of bomb-making materials was found overnight, as well. the atf is here investigating.

this accused killer efren valdemoro is now dead. he was killed by officers last night after a high-speed chase ended in the shopping center parking lot in richmond. his girlfriend was found dead in the car. valdemoro was already wanted in connection with the killing of an elderly man at this home in hercules. that man's son frederick sales has been missing since his father was found murdered and is feared to be a victim as well. valdemoro was a frequent guest at this home in vallejo, the home where two women were found dead late yesterday where massive amounts of explosive from c4 to dynamite were found. these two women are associated with the home. they may be the dead women in the house. >> it's hard to tell what happened. >> reporter: allen as husband

has been living there the whole time. >> at this point, he is going to be charged with the explosives. as far as connection with bodies inside, the possible homicide, we're still trying to connected the dots. >> reporter: police are looking at the possibility that efren valdemoro was involved in the killings. this man knew him. >> i don't know, he would come out with his cats and talk about how nice they are and all that. >> reporter: but he says valdemoro's relationship with allen was anything but. >> she is like always screaming outside that door and she would scream and i -- and, uhm, efren would tell her like go inside, shut up. and then he would look at me and say don't mind her, don't mind her. >> reporter: another twist to the story this in from the hercules police. apparently the girlfriend found dead in the car ownses home

where the elderly man was found dead last week. the man whose son is still missing. this is very confusing. the law enforcement agencies are trying to piece it together, meeting this afternoon to try to figure out what exactly is connected here. >> where do they even start with motive? >> reporter: that is a good question. it's been very, very confusing and convoluted situation here from our perspective. and the investigators i have spoken with seemed just as confused. >> all right. anne makovec in vallejo, thank you, though, for the latest. we are also following breaking news on the east coast now. police in maryland say that a gunman has entered the discovery channel headquarters. there are reports that he has taken at least 12 people hostage. this is happening in the town of silver spring, which is inside the capital beltway north of washington, d.c. this is a live picture here. a person in the building tells "associated press" the man something strapped to his chest.

so the bomb squad is now on the scene there. so far, no reports that anyone has been hurt. some of the employees have been able to leave the building. we also saw them evacuating infants from a daycare center there. this is in silver spring, maryland, outside washington, d.c. a gunman in the discovery channel headquarters. we'll continue to keep an eye on this throughout the afternoon. the condition of a fremont police officer who was shot in oakland last week has improved. and he has had another operation, too. yesterday's surgery on 39-year- old todd young was successful. young's condition has been upgraded to serious but stable. a shooting suspect is still in jail in san diego. 20-year-old andrew barrientos is charged with attempted murder and will be arraigned in alameda county tuesday. we are now starting the third month without a state budget. lawmakers ended their session last night after debating two different budget plans. governor schwarzenegger said he wouldn't sign any budget that didn't have tax reform or

pension reform. but the governor isn't getting any budget plan. neither the senate nor the assembly passed either version. the governor might call lawmakers back for a special session to try to work something out on that budget. there will not be a statewide ban on those plastic grocery bags, at least not anytime soon. the state senate yesterday rejected a bill that called for stores to stop giving out plastic bags starting in 2012. it would have required customers to be charged for the plastic bags. supporters say the bags hurt environment. opponents say it would cost jobs and add to financial burdens on people and businesses. democratic incumbent barbara boxer and her republican challenger carly fiorina will debate tonight in moraga. fiorina is the former ceo of

hp. it's a closing rate. the debate is at 7:00 in st. mary's college. city leaders in palo alto will consider taking a formal stand against california's high- speed rail plans. the city council's high-speed rail committee will meet tomorrow and may take a vote of no confidence on that project. he would join several cities between san jose and san francisco that have expressed concerns about the rail system's effects on neighborhoods. several cities in fact say that the rail should be in telephones or underground when going through their neighborhoods. but the high-speed rail authority says the elevated tracks are the only way to keep costs under control. now, whenever steve jobs takes the stage, all the world seems to listen. the apple ceo made another one of his famous presentations in san francisco this morning. cnet's molly wood outside the moscone center. there is speculation of changes with itunes, apple tv which was a rare miss for apple. so what's the word? >> reporter: most of things that we expected did turn out to be true. there were new ipods but there was also an announcement of a

new version of apple tv that will include the ability to rent not buy movies and tv shows and the tv shows will be priced at 99 cents which is about the lowest that we have seen for tv show rentals. >> molly, one question i have was about itunes. is there a new ipod and is itunes going to work differently? or am i getting things convoluted? >> reporter: there was a new version of itunes, itunes 10. the big announcement is the same software program was. the announcement is that apple built in a new social networ so that itunes users can share music information, follow different artists, not with other social networking sites, but there was no new ipad announced today. >> what about apple tv? that's a rare myth as far as apple is concerned. >> reporter: it's interesting. steve jobs even acknowledged that. he said it was something that hadn't really taken off, but he

said that no one had managed to kind of get it right and really engage consumers so he is hoping this will be the version that does it. >> a lot of people were kind of jokingly commenting that he appeared in different fashion. he didn't have the turtleneck. he actually wore a crew neck or something, big change for him. >> reporter: now, you can tell how serious and maybe too seriously everyone takes these recent when we sit there and think, that's not a turtleneck what does it mean? >> exactly. probably not much. maybe he is more comfortable. thank you, molly wood. still ahead for us, all eyes on earl. >> now is the time, there is not much time left to know exactly what you need to do to protect yourself. >> that hurricane moving closer to the east coast and closer to areas that rarely deal with a storm of that magnitude. plus new dawn in iraq. the ceremony marking the final phase of a long costly war. and we are going to kick

things up today. temperatures warming up to triple-digit highs. yeah, it's going to be hot today. i have those hot temperatures coming up. ,,,,,,,,,,

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morningstar farms® grillers® original. [ indistinct conversations ] now that's more like it. [ ding! ] north carolina is now under a hurricane warning as earl approaches the coast. the storm has weakened to a category 3. forecasters are warning from the carolinas up to maine not to let their guard down. manuel gallegus in north carolina where the surf is off limits. >> reporter: lifeguards put out no swimming signs this morning on north carolina beaches. >> we have swells starting to really develop from hurricane earl and so we are going to red flag our beaches which means we are going to close them to swimmers. >> reporter: with hurricane

earl approaching the east coast federal authorities told millions to be prepared to leave but the slaughter family from pennsylvania isn't ready to evacuate. >> this is our vacation for the summer. it's the only week we have. and we're kind of sticking it out here. >> reporter: you want to stay? >> absolutely. >> reporter: how come? >> i worked 100-week to come down here so i want to relax as much as possible. >> reporter: riptides and rough surf are making it too dangerous to go into the water. yesterday alone there were dozens of rescues here. >> this swell builds we are going to have to watch out for the rip currents and people getting in trouble in the water. >> reporter: earl is expected to track parallel to the east coast over the next few days. forecasters are concerned the powerful storm may turn west putting long island and cape cod in its path. >> a lot of people there don't have experience with hurricanes. now is the time -- there is not much time left to know what you need to do to protect yourself. >> reporter: even if earl doesn't deliver a direct hit to land, much of the east coast will see big waves, powerful winds and rain this holiday

weekend. manuel gallegus, cbs news, kill devil hills, north carolina. a transition ceremony in baghdad today marks the last phase of the iraq war. with the passing of a flag, u.s. changed commanders and ushered in the final phase called operation new dawn. army general lloyd austin has taken over command of the remaining soldiers in iraq. vice president biden did address the troops and dignitaries formally declaring an end of u.s. combat operations. so u.s. soldiers will now focus on preparing iraqi security forces to protect their own country. still to come for us, an exclusive look inside one of the most expensive apartments in america. a beautiful large collection for shoes, bags, dress. >> the condo in the bay area that's going to have you picking your jaw up off the floor. >> wow, now that's a closet! whoo! get giddy just thinking about

it! [ laughter ] >> forecast for today, it's going to be hot and even hotter conditions are expected. we'll be right back. thanks, tracy. ,,,, our real national pastime? saving money. and like baseball people love their stats. i started bringing my lunch to work -- 50 bucks a week in my pocket. here's a good one: state farm insures 40 million drivers.

more than geico and progressive combined. i saved because i'm accident-free. of course, with so many ways to save including discounts of up to 40%, having that many customers shouldn't be a surprise. so ask a neighbor about state farm, then call an agent at 1-800-state-farm or go online. but what were the results? fact: brown promised to improve schools. but the drop out rate increased 50%, and the state had to take over the schools. fact: the city controller found employees paid for 22,000 hours... they never worked. fact: brown promised to cut crime. but murders doubled, making oakland the 4th most dangerous city in america. jerry brown. he just can't deliver the results

and a lot of people, when they get a denture, they think the best way to clean it is by brushing it with toothpaste. toothpaste contains abrasives that scratch dentures, leaving microscopic crevices where bacteria can grow, and bacteria can cause bad breath. the best way to go is to soak them in polident. only polident is proven to clean without scratching and kills 99.9% of odor-causing bacteria. i recommend using polident and soak every day. it's the right way to go. it's one of the 10 most okay, it's hot. it is a "spare the air" day. >> we have unhealthy air

quality in santa clara valley. so if you have breathing conditions, asthma, anything like that don't be out side during the heat of the day when you have all that gunk in the air. it could be difficult to breathe. this afternoon will be nice. beautiful clear sunny skies. don't you like it? this afternoon, sunny, hot, but it is a "spare the air" day. space yourself. don't be outside during the heat of the day. inland temperatures up to 99 degrees. around the bay 82 to 92. along the coastline up to 76 degrees with plenty of sunshine expected. for tonight, clear, mild temperatures yet again. mostly clear along the coastline. temperatures in the lower to the upper 50s. upper 50s and lower 60s around the bay. and similar conditions inland. now, we did have a big jump in our temperatures yesterday. it was part one. today part two. take a look of a. concord's

high temperature yesterday, 87 degrees. today nine degrees warmer. santa rosa 10 degrees warmer. and check out san francisco. 72 yesterday, 84 today, 12 degrees warmer. other parts of the bay area will feel the warmer temperatures. 90 in mountain view. head to the coast, it's nice, lower 70s in pacifica and mid- 70s in half moon bay. east bay locations, near 100 degrees. antioch at 98. 99 in brentwood. 97 in danville. 98 degrees in san ramon. 84 in berkeley. 88 in oakland. so slightly cooler the closer to the bay. once you move farther n land to napa, sonoma, santa rosa, inland mid-90s. so yesterday part 1, today part 2. tomorrow, that's part 3. 102 inland, that's no joke. friday things will begin to

cool down. and as you move into the weekend, take a look at saturday and sunday. and then as we move into labor day, which is monday, really nice holiday weekend expected. temperatures won't be so hot. they will be more mild. they will be just right. i love that, goldilocks. just right! that's a look at your weather. back to you, allen. >> all right, tracy. thanks. and i know she has shoes so she needs a closet. this is one of the 10 most expensive apartments in america right here in san francisco. for about $50 million, it can be yours. joe vazquez takes us on an exclusive tour. >> sunrise, sunset, you will see we have views in all directions. >> reporter: it is san francisco's most expensive housing property on the market. the penthouse condo on the 40th floor of the st. regis took four years to build and look what you get for $49 million. >> it's hard not to have a jaw dropping experience in this room. >> reporter: this room is a spectacular living room. look at this. a two-story waterfall.

vistas of much of the bay area. >> one of the great features of this apartment is it's off the side of this magnificent living room you have an incredible terrace which is over 2,000 square feet with high walls that protect you from the elements in san francisco. >> we are 17,100 plus 2900 square feet of terraces for a grand living space of 20,000. >> reporter: forbes.com reports that 6 bedrooms, 7 baths st. regis penthouse is number five on the less of expensive condos, apartments or co-ops in america. the other nine of the top 10 are all in new york city. in san francisco, the second most expensive housing property for sale is this $45 million mansion at the end of billionaire's row on broadway. but take another look at the st. regis condo. the major difference here, it is brand-new. >> this is her closet. a beautiful large collection

for shoes, bags, dresses. >> reporter: greg lynn of sotheby's international says the penthouse is the most expensive freshly built apartment on earth. the crown jewel check out the master bath. >> the master bathroom was designed to be one of the most luxurious spots on earth. you will notice the double book matched marble that was hand selected by the owner's designers in italy and extends into the double showers here that have rain showers above. >> reporter: lynn says he can't name names but sports stars and world leaders are among the prospective buyers. >> some of the leading buyers taking interest are coming from china. but there's also a number of bay area families that are looking at this as well. >> reporter: joe vazquez, cbs 5. >> can't afford the home owner fee. all right, a remarkable discovery deep in the sea. what divers found that's now believed to be the oldest of its kind in the world. ,,,,,,,,,,

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estee lauder, mac, bobby b today's tip of the someday yukon gold potatoes, the new crop is in the market. what makes them special? by the way, one time they were hard to find. you know, very expensive. but now they are available anywhere you buy produce because once you have yukon gold potatoes that's the only one you will enjoy. loaded with sugar, very little starch, very delicious. like mother nature added the butter inside. this is one cut up. look at the gold inside! they are beautiful. and the new crop, i want you to

take a look at these potatoes. look how beautiful. the new crop is this color, nice and bright. the old crop will be dull so look for the new crop. when you bring them home, store them in the refrigerator right away. that's so important. don't hold them for too long. if you hold them for too long the sugar becomes starch and loaded with nutritional value yukon gold potatoes great any way you want to enjoy them. the new crop into the market and enjoy them. great four, delicious. mashed potatoes with this, great for you. just as good without any butter. i'm tony tantillo, your fresh grocer. and always remember to eat fresh and stay healthy. even french fries! >> all right. thanks, tony. coming up tonight, cbs 5 at 5:00 tonight, estee lauder, max, bobby brown, makeup can get expensive. but not always. some stylists in the bay area are going to show us where you can get some true bargains that won't break the bank, that's coming up at 5:00. divers in the baltic have made a sparkling discovery you

might say. not gold or silver. the oldest drinkable champagne in the world. they believe this was made in the 18th century. the champagne discovered at the site of an ancient shipwreck off finland. several bottles there have been salvaged. the dive instructor one of the lucky few to taste it and he said the champagne was fantastic! >> he is going to try to sell it for how much a bottle? >> if you can afford it. ,,,,

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